edpr announcement

Spain published the regulatory revision for wind energy assets

Monday 02, March 2020

Madrid, February 28th 2020: The Spanish Government published today, in Boletín Oficial Del Estado, the Order TED/171/2020 which includes the revision of the parameters to remunerate the renewable energy assets, under the remuneration framework that was approved by the Royal Decree 413/2014 of June 2014.

In accordance with Royal Decree 17/2019, pre-tax return is unchanged at 7.398% until 2031.

The 3 year revision period (2020-2022) of the parameters includes:

  • Wind profile coefficient: from previous 14.79% to 6.14% (reflecting the average of 2017 and 2018)
  • Generation toll: no longer in place vs €0.5/MWh previously
  • System Operator compensation cost: introduced at €0.137/MWh
  • Market price (€/MWh): forecasted pool prices with defined caps and floors for the standard production, such that:
€/MWh202020212022≥2023
High Cap63.1360.4656.6356.63
Low Cap58.7756.2952.7352.73
Central Scenario54.4252.1248.8248.82
High Floor50.0747.9544.9144.91
Low Floor45.7143.1841.0141.01


Standard production (MWh):

  1. is exposed to prices fluctuations when the wholesale price is between the “High Floor” and the “Low Cap”
  2. benefits 50% when the wholesale price is between the “High Cap” and “Low Cap” and are 50% protected of the price between “High Floor” and “Low Floor”
  3. isn’t exposed to prices fluctuations when the wholesale price is higher than the “High Cap” or below the “Low Floor”

As a consequence of the above, EDP Renováveis (“EDPR”) remuneration to investment (see Annex I) is €116 million per year, from 2020 to 2022.


Annex I – Remuneration to Investment
The remuneration to investment depends on the entry into service of the asset and is defined based on a standard asset for each year, such that:

DateRemuneration to Investment
(€ thousand/MW)
EDPR EBITDA
MW
20042.111267
200514.465198
200637.248132
200770.993202
2008104.431223
2009113.115220
2010122.641164
2011107.168126
2012103.223109
201399.6820



EDP Renováveis, S.A.

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